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Can you summarize NERS 8-133?
BANKS AND BANKING > Rate of interest; prohibited acts; penalties; pledge of letters of credit authorized.
Short Summary
This legal document governs the rate of interest, prohibited acts, penalties, and the pledge of letters of credit authorized in the context of banks. It allows banks to pay interest at any rate on deposits, with certain exceptions. Banks are prohibited from paying a greater rate of interest to officers, directors, principal stockholders, or employees than that paid to other depositors. Violators of this provision are guilty of a Class IV felony. Additionally, it is a Class IV felony for any bank officer, director, principal stockholder, employee, or depositor to pledge any assets of the bank for making or retaining a deposit, except as provided by law. Deposits made in violation of this provision are not entitled to priority of payment from the assets of the bank. The document also outlines specific exemptions for securing deposits made by a trustee, deposits made by the United States Secretary of the Interior on behalf of individual Indians or Indian tribes, and deposits secured by a pledge of assets or an acceptable bond as provided in the Public Funds Deposit Security Act.
Whom does it apply to?
Banks
What does it govern?
Rate of interest; prohibited acts; penalties; pledge of letters of credit authorized
What are exemptions?
Exemptions are provided for securing deposits made by a trustee under 11 U.S.C. 101 et seq., deposits made by the United States Secretary of the Interior on behalf of any individual Indian or any Indian tribe under 25 U.S.C. 162a, and deposits secured by a pledge of the assets of the bank or by furnishing an acceptable bond as provided in the Public Funds Deposit Security Act.
What are the Penalties?
Guilty of a Class IV felony
Jurisdiction
Nebraska